Members Equity Bank is marketing a series of residential mortgage backed securities. The collateral is a portfolio of Australian prime residential mortgages with a total amount outstanding of approximately A$500 million. S&P Global Ratings has assigned preliminary ratings to five of the six classes of RMBS, to be issued as the SMHL Series Securitisation Fund 2016-1. S&P's preliminary ratings were assigned as follows:Class   Rating      Amount (mil. A$)A1      AAA (sf)     460.00A2      AAA (sf)       15.5B         AA (sf)        14.5C           A (sf)         6.0D        BBB (sf)       1.50E           NR             2.5Moody's Investor Service has assigned provisional ratings of (P)Aaa (sf) to the A$460 million Class A1 notes,. The five other tranches of notes are not rated by Moody's. According to a Moody's pre-sale report, 54.3 per cent of loans in the portfolio are covered by Lenders Mortgage Insurance policies covering losses up to 100 per cent of the principal amount, the accrued interest of each loan and reasonable expenses involved in enforcing the mortgage.Investment loans represent 24.4 per cent of the pool, and interest only loans 18.7 per cent of the pool, an exposure that is well below the Australian mortgage market averages of 35.4 per cent and 39.3 per cent, respectively.The portfolio has a weighted average seasoning of 61.80 months, Moody's reported. Conversely, the portfolio has a relatively high loan to value ratio of 68.0 per cent and a relatively high share of loans (22.2 per cent) with a scheduled LTV above 80 per cent.